Yu Weining, statistigrapher of the Industrial Department of the National Bureau of Statistics, interpreted the profit data of industrial enterprises, and Yu Weining said that overall, the profits of industrial enterprises will maintain a recovery trend in 2023. In the next stage, we must continue to fully implement the spirit of the Central Economic Work Conference, give full play to the advantages of the ultra-large market, strive to expand domestic demand, boost market confidence, stimulate the vitality of various business entities, promote the self-reliance of high-level science and technology, accelerate the construction of a modern industrial system, constantly consolidate and strengthen the recovery trend, and continue to promote the high-quality development of the industrial economy.

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A05B-2452-C900  In 2023, the profits of industrial enterprises above designated size continue to recover the “ballast stone” role of the equipment manufacturing industry

— Yu Weining, statistician of the Industrial Department of the National Bureau of Statistics, interprets the profit data of industrial enterprises

Domestic demand is gradually improving, industrial production is picking up steadily, performance of industrial enterprises above designated size continues to recover, profits of major industries are improving, new drivers are being nurtured and strengthened, and the foundation for high-quality development of the industrial economy is being further consolidated.

A05B-2452-C900  The profit decline of industrial enterprises narrowed compared with the previous year, and the profit of the month achieved positive growth for five consecutive months. In 2023, the profits of industrial enterprises above designated size in China will fall by 2.3% over the previous year, which is 1.7 percentage points narrower than that of the previous year, and continue to maintain a recovery trend. From the perspective of the trend of the year, the cumulative profits of industrial enterprises have risen month by month from a year-on-year decline of 22.9% in January-February to a decline of 2.3% for the whole year, and the decline in profits has narrowed significantly. On a quarterly basis, the profits of industrial enterprises in the first and second quarters fell by 21.4% and 12.7% year-on-year respectively, and increased by 7.7% and 16.2% in the third and fourth quarters respectively, with profits turning from a decline to an increase and achieving relatively fast growth. From the monthly growth rate, since August, the profits of industrial enterprises have achieved positive growth for five consecutive months.

A05B-2452-C900  The revenue level of industrial enterprises has steadily recovered, driving continuous improvement in profits. Market demand gradually recovered, industrial production picked up steadily, and the connection between production and sales continued to improve, driving the revenue growth of industrial enterprises. In 2023, the operating income of industrial enterprises increased by 1.1% over the previous year, and the cumulative revenue growth rate rebounded for five consecutive months. Among them, the operating income in the fourth quarter increased by 3.2% year on year, the growth rate was 2.9 percentage points higher than that in the third quarter. The scale of operation of industrial enterprises has maintained an expansion trend, showing strong resilience, creating favorable conditions for the sustained recovery of corporate profits.

More than 60% of the industry achieved annual profit growth, and 70% of the industry profits showed a rebound trend. In 2023, among the 41 industrial categories, 27 industries will have an increase in profits over the previous year, with a profit growth of 65.9%, an increase of 12.2 percentage points over the previous year. The annual profit growth rate of 29 industries accelerated or narrowed from January to November, from a decline to an increase, showing a rebound trend, accounting for 70.7%.

A05B-2452-C900  The profit growth of the equipment manufacturing industry accelerated, and its supporting role was further strengthened. Further progress was made in optimizing and upgrading the industrial chain, new industrial drivers were nurtured and strengthened, and the efficiency of the equipment manufacturing industry continued to improve. In 2023, the profit of the equipment manufacturing industry will achieve positive growth, with a growth rate of 4.1%, 2.4 percentage points higher than the previous year; Driving the industrial profit growth of 1.4 percentage points, 0.8 percentage points higher than the previous year, the support role of industrial enterprise profit recovery has been further enhanced. By industry, benefiting from the rapid growth of shipbuilding orders and the record high production of automobiles, the profits of railway, shipping, aerospace and transportation equipment and automobile industries increased by 22.0% and 5.9%, respectively, over the previous year. The electrical machinery industry was driven by new energy industries such as photovoltaic and lithium-ion batteries, and its profit increased by 15.7%; The general equipment industry was driven by the continuous recovery of the industrial chain, and its profit increased by 10.3%.

A05B-2452-C900  The profit decline of raw materials and consumer goods industries has narrowed, which has helped to improve industrial profits. Fixed asset investment grew steadily and downstream demand continued to recover, driving a significant improvement in the profitability of the raw material industry. In 2023, the profit decline of raw material manufacturing industry was sharply narrowed by 17.8 percentage points compared with the previous year. Among them, the steel industry was affected by factors such as improved demand and low base, and its profit increased by 1.57 times; The profits of the non-ferrous and petroleum processing industries increased by 28.0% and 26.9%, respectively. With the continuous effectiveness of various policy measures to expand domestic demand and boost consumption, consumer demand has gradually recovered, and the profit of the consumer goods industry has improved significantly. In 2023, the profit of the consumer goods manufacturing industry fell 1.1% over the previous year, and the profit scale was close to the level of the previous year, and the decline was significantly narrowed by 10.0 percentage points. Among them, the profits of textile, wine, beverage and tea, food manufacturing, leather and shoe industry increased by 2.0% to 8.5% respectively.

A05B-2452-C900  Electric water industry profits are growing rapidly. In 2023, the profits of the electricity, heat, gas and water production and supply industry increased by 54.7% over the previous year, driving the industrial profit growth of 3.1 percentage points. Among them, with the macroeconomic recovery and improvement, the rapid growth of electricity generation and sales, and the year-on-year decline in fuel prices and the reduction of power generation costs, the profit of power and heat production and supply industry increased by 71.9%.

The upward pressure on corporate costs has eased, contributing to a recovery in profits. The production and sales of enterprises have continued to grow, the scale effect has been enhanced, and the decline in raw material prices has been greater than the decline in the ex-factory prices of industrial products, and other factors have jointly pushed the unit cost of enterprises to fall. In 2023, the cost per 100 yuan of operating income of industrial enterprises was basically unchanged from the previous year, of which, the third and fourth quarters decreased by 0.71 yuan and 0.60 yuan respectively. The upward pressure on corporate costs has eased, helping to expand profit margins and promote the recovery of corporate profits.

Overall, the profits of industrial enterprises will maintain a recovery trend in 2023. In the next stage, we must continue to fully implement the spirit of the Central Economic Work Conference, give full play to the advantages of the ultra-large market, strive to expand domestic demand, boost market confidence, stimulate the vitality of various business entities, promote the self-reliance of high-level science and technology, accelerate the construction of a modern industrial system, constantly consolidate and strengthen the recovery trend, and continue to promote the high-quality development of the industrial economy.